Week #5 Meridian HP

I attended my first department meeting today. At the meeting, a vital question I used to ask myself was answered. How does a health insurance plan, funded by the government, serving low income and elderly populations sustain itself and make a reasonable profit? While I was only given an overview today of how costs can be minimized and where profits can be made, I hope to gain a deeper understanding of this question through the course of my internship.

The more we work in a given industry the more aware we become of the current issues surrounding it roadblocks to success. Obamacare (ACA) has become a commonplace term in the past year or so, acknowledging a health reform scheme that relies mainly on providers bearing responsibility for assessing costs of medical care, mainly through several forms of capitation. This altered the initial “consumer-directed” approach to healthcare, leading to its success. But this week, a new healthcare plan was released by House Speaker Paul Ryan (Republican) as an alternative to the ACA.

The plan called for more option for health insurance policies, signifying lower costs, while simultaneously including fewer safeguards for people that get sick. He took the consumer perspective on the plan; where the healthcare benefit is turned into a set contribution of money that consumers can own and control, and that becomes more portable.

But on the downside, the plan would limit federal spending on Medicaid for poor patients. MHP has its foundation in Medicaid, and if this plan becomes approved in the future, a significant number of memberships could be withdrawn affecting the profits of the company.

This plan hasn’t gone into effect, and probably won’t have a chance to in the next two years. But when looking at future projections and expansion plans, government decisions contribute largely to how business decisions are reached


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